Wexton introduces bill to protect retirement savings during COVID-19 financial fallout

Virginia

Her Retirement Protection Act would suspend the required minimum distribution for retirement plans, like 401K’s, TSPs, and IRAs.

WASHINGTON, D.C. (WDVM) — Congresswoman Jennifer Wexton (Va-10) has introduced legislation that would safeguard retirement savings during the coronavirus pandemic.

Her Retirement Protection Act would suspend the required minimum distribution for retirement plans, like 401K’s, TSPs, and IRAs. Individuals with these plans are required to withdraw a percentage of their retirement plan when they turn 72 or face a penalty of 50 percent or more.

Wexton says her office has received multiple calls from concerned seniors. “That amount that you’re supposed to distribute is based on its value on January first of that year,” Wexton said. “So on January first the stock market was going great, the value was very high, but now because stock market’s plummeting seniors will be required to take our money and sell their assets at a very low rate.”

The act is co-signed by 13 other congresspeople, including Don Beyer and Gerry Connolly of Virginia, Chrissy Houlahan of Pennsylvania and Jamie Raskin of Maryland. 

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